Truth and Consequences of Offshoring 4049

Straydog He made an election yr promise to steel workers in ohio(?) that they won't lose their jobs. So, he(as in US govt) imposed tariffs against steel imports. When imports became costlier -local steel manufacturers could operate on a profit and hence retained their workers. But when trading partners complained about it to the WTO and threatened retaliatory tariffs, he backed out. Many of the privileges that India has provided to american companies in terms of market access would have allowed it to gain access to the US services market (both offshore and onsite). But the US govt has resisted both of these -and as you probably ahve figured, giving that market access would cost many ordinary workers their jobs.

er -we are talking 2 different things. Worker rights isn't what Im talking of. Im talking of giving foreigners freedom to work in the local market. The US has a hire and fire policy and is low on worker rights (in terms of job security) -but is high on protecting the US labour market from compebreastion. Its just that corruption on part of employers and politicans has messed up things a bit.

And the reason why they insist on offshoring despite all of those failures, risk to intellectual property, distance, communuication problems, cros-cultural differences, allegiance to the state, dislike for non-whites etc.. is because the cost differential COMPELS them to do so.

I necer denied that it has been criticized nor did I say the ones losing their jobs are deficient in any sense of the word. If it costs less to get work done in India, then employers would rather train their Indian staff and reap the rewards of lower cost than retain their US staff -which adds to their cost.

English speaking isn't a pivotal element.

These aren't my views -and if you propose something that is counter to well-accepted notions(validated over time), then either you are talking nonsense or you are about to stun the world with ground-breaking theories. BTW-Russel still hasb't told me how he plans to overcome the cost differential issue if he were the CEO-president. If he cannot convince me by theory, then at least he should prove it by hypothesis how he would do it in practice.

regards -kamal